What can a Homeowner do to Stop a POWER of SALE vs FORECLOSURE?
While the two legal processes have some major differences, the methods of stopping these processes are similar. Every method of stopping a Power of Sale or Foreclosure involves paying the mortgage lender the money they are requesting. Here are some of the most common ways people manage to pay off their lender:
1. Get a second mortgage to bring the first mortgage back into good standing
2. Replace the problematic mortgage with a new mortgage
3. Sell the property before the lender takes it
The best solution depends on the value of the property, the total value of all mortgages on the property and what stage of the legal process the lender is currently in. The simple solution would be to get a new mortgage in order to pay the arrears plus fees on the first mortgage and bring it back into good standing. If you cannot qualify for a mortgage then the next best option would be to sell the property before the lender can take it. By selling the property you are able to avoid many of the fees involved with the Power of Sale and you can avoid losing equity in the case of Foreclosure.